Certified Supply Chain Professional (CSCP) Practice Exam

What defines a bottleneck in production?

1. When resources are in surplus

2. When capacity is higher than demand

3. When capacity is less than the demand placed on it

4. When production is operating at full capacity

The correct answer is: When capacity is less than the demand placed on it

A bottleneck in production occurs when the capacity of a particular resource or process is less than the demand placed on it. This situation prevents the production system from achieving its maximum throughput because the bottleneck resource becomes the limiting factor in the overall production flow. When demand exceeds the capacity of this resource, it creates a backlog and can hinder the efficiency of the entire production process. Understanding this concept is crucial for supply chain management, as identifying and managing bottlenecks can lead to increased productivity and reduced lead times. Sustaining operations effectively requires ensuring that demand and capacity are aligned, addressing the bottleneck to improve overall system performance. When capacity is lower than demand, it signals that adjustments may need to be made, such as increasing capacity at the bottleneck resource, reallocating resources, or optimizing scheduling strategies to alleviate the congestion.